Fibria Launches Tender

Fibria Celulose has launched a liability management targeting up to $500m of its 7.5% 2020 bonds, it says. In the cash offer, the pulp and paper producer is offering holders a clearing price to be determined through a modified Dutch auction process. Each holder that tenders notes will specify a bid price within the $1,000-$1,060 bid range, which represents the minimum consideration such holder is willing to receive per $1,000 principal tendered. The total consideration includes an early tender payment of $50 for each $1,000 tendered before June 22. The tender expires July 9. The offer is conditioned on Fibria getting acceptance from holders of at least $400m. Deutsche Bank and Citigroup are managing the offer. There is about $1.87bn outstanding in the 2020 bonds.